Updated on Short-Listed Companies & OPR

Still remember my post on some short-listed companies in the mid of January? I must admit most of them are on board already, due to the higher profit growth from the quarter report, from 5% to 30%. They are just good to generate stable profit for me. 

Among them, the most outshine one is Coastal, which is my favorite. I believe it will continue to grow higher, as the positive factors are surrounding her. On the other hand, if you are unlucky and continue to hold IRCB which I mentioned in my previous post that I don't want to touch at all, please look her price between the date of my post and today. I hope you have cleared it at it's peak.

Today, Bank Negara finally raised the Overnight Policy Rate (OPR) by 25 basis points to 2.25%. Again, they claimed the domestic economy has improved significantly and is now on a path of recovery. Perhaps what they said is true, it's time. For those who bought real estate in 2009, apparently you have made the right decision.

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IRCB Part II

Wow, let's look at what happen to IRCB these 2 days. It is just the top share listed in KLSE these few days! Rubber glove shares are in the highest play these few weeks!

On Monday, it managed to bull more than 40% in a single day, with the highest volume in the day. On Tuesday and Wednesday, it goes up 10% and 6% respectively. On this morning, it went up to the top with 20%, and finally it was queried by Bursa before lunch time. However, IRCB still managed to close with 3% and top volume share of the day. What a strong rally!

According to one of my mentors, whenever there is people fishing, there should be fishes to catch. This is very true. I should have look into this earlier and trade with my analysis and instinct, instead of just follow my dead rules.

Apart from the reasons in the post earlier, I noticed there were some reasons which is too risky to enter after Monday. IRCB is trading at price-to-earning ratio of 86 times for now, while IRCB's directors were crazily dropping their massive shares to the market on Monday. Perhaps they already knew their company share price has overbought which far away from intrinsic value, and they made some profits of it? It makes sense to me, but the market just gone crazy about this rubber glove share, it has risen for almost 40% again after Monday without any correction. It's totally out of my expectation.

So after Bursa's query and the high PER news were out, I believe part of tomorrow's KLCI attention will still dominate to IRCB. It will either continue to bull like nobody, or fall back to it's intrinsic value. How I wish KLCI has straddle so I can call and put options at the same time to make some profits of it. Well, let's see whether IRCB manages to push on upper side on tomorrow.

Happy trading.

IRCB

Ladies and gentlemen, I believe you have notice the crazy bullish of rubber glove stocks in the market these few weeks, they are just unstoppable. And CIMB's Terrance and myself are keep emphasizing the positive outlook of these companies and they are just overweight for year 2010.

So guess what, the leader companies like Topglov, Harta and Supermx have went up for quite some days, at least 20-30%, and now it's the turn for laggards to go up. Since the laggards price are very low, the gain percentage is amazing. Just look at Ruberex-wa, it went up almost close to 100% since New Year eve. Adventa was last 2 weeks back. These few days are Latexx and IRCB turn.

You must be wonder what the heck is IRCB. In fact, I got to know about this company when my broker friend told me to pay attention to it. From the day she told me, it stayed at about 73 cents. Even though I agreed with her opinion that these laggards will definitely go up under the same positive outlook industry, adding the positive entry point from technical analysis, I refused to go in after some thoughts, due to the followings:

1) I don't invest any share less than RM1 for now. They are just too lousy and have problems, as potential growth stocks should have a long bullish since March last year. And share below RM1 can easily trigger my stop loss.

2) I don't like it's annual report and financial result for last year.

3) I don't like it's management.

It is really tempting me these few days, but I just have to stick to my rules and be discipline. And guess what, it is finally exploded today, with 42% changed at RM1.34.

So do I regret? No, I don't. I always believe chances will still be there, once I'm getting more expert in the near future.